Regional REIT sells Glasgow Venlaw and Elmbank Gardens offices for £6.25m

Regional REIT Limited (LSE: RGL), a UK regional property specialist, has successfully exchanged and completed the sale of its Venlaw and Elmbank Gardens offices in Glasgow. The property was sold for £6.25 million, achieving a notable 26.3% uplift against its most recent valuation as of 30 June 2023.

Details of the Sold Property

The sold property, encompassing 51,775 sq. ft. of office and ancillary leisure space, includes 23 individual units across 13 separate leases. The new owner plans to redevelop this office space for student and residential use, marking a significant change in the property’s utilization.

Sale Proceeds to Aid in Debt Reduction

The proceeds from this sale will be strategically used to reduce the company’s debt. The board of Regional REIT remains dedicated to a controlled disposal program, aiming to bring the loan-to-value (LTV) ratio back to the company’s long-term target of 40%.

CEO’s Statement on the Successful Sale

Stephen Inglis, CEO of London & Scottish Property Investment Management, the asset manager for Regional REIT, commented on the successful sale. He noted that the sale, at 26.3% above the year-end valuation, reflects the asset management team’s skill in adding considerable value to the property.

Regional REIT’s Ongoing Asset Disposal Strategy

This sale is part of Regional REIT’s broader strategy of asset disposals, totaling £26.0 million in the financial year to date, slightly above their last valuation. The company continues to focus on reducing net borrowings to meet its c.40% LTV target while maintaining its quarterly dividend.

Overview of Regional REIT Limited

Regional REIT Limited and its subsidiaries operate as a real estate investment trust in the UK, focusing predominantly on office properties outside of the M25 motorway. As of 30 September 2023, the portfolio includes 150 properties with 1,021 tenants and is valued at approximately £752.9 million.